Correlation Between BYD Co and Kunwu Jiuding
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By analyzing existing cross correlation between BYD Co Ltd and Kunwu Jiuding Investment, you can compare the effects of market volatilities on BYD Co and Kunwu Jiuding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BYD Co with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Kunwu Jiuding.
Diversification Opportunities for BYD Co and Kunwu Jiuding
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BYD and Kunwu is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment and BYD Co is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BYD Co Ltd are associated (or correlated) with Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of BYD Co i.e., BYD Co and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between BYD Co and Kunwu Jiuding
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.81 times more return on investment than Kunwu Jiuding. However, BYD Co Ltd is 1.24 times less risky than Kunwu Jiuding. It trades about 0.29 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.04 per unit of risk. If you would invest 28,499 in BYD Co Ltd on November 29, 2024 and sell it today you would earn a total of 8,711 from holding BYD Co Ltd or generate 30.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| BYD Co |
| Kunwu Jiuding Investment |
BYD Co and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Kunwu Jiuding
The main advantage of trading using opposite BYD Co and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Kunwu Jiuding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| BYD Co vs. Chenzhou Jingui Silver | BYD Co vs. China Sports Industry | BYD Co vs. Tibet Huayu Mining | BYD Co vs. Lander Sports Development |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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